In my last blog, we touched on the primary benefits of importing goods through a Customs Bonded Warehouse – big savings on governmental duties. Even experienced enterprises may overlook situations where bonded warehousing makes dollars and sense. So let’s look a little more closely at some real-life examples to get you thinking about where you could realize similar savings.

One of our clients is a large freight forwarder. Among other commodities, they purchase shipments of alcohol overseas and have it delivered to Challenge. They might get a container of rum from Jamaica and another of whiskey from Ireland. We consolidate those goods and repackage them for shipment to customers outside the United States. Their customers get a case of rum and a case of whiskey. This saves our client from paying any U.S. Customs duties on the alcohol.

A wealthy United States businessman is building a second (or third, or fourth) mansion home in the Caribbean. His building contractor shipped an order of Italian marble to Challenge, where we store it duty-free until the construction crew is ready to install. Depending on the home locations of the builder and the homeowner, governmental fees are charged only when the marble is dispatched to its final destination, or may be waived altogether.

Our interior decorator client got a great deal on a container of gorgeous silk damask fabric. It sits at Challenge, safe and secure. As she needs the fabric for draperies, she pays Customs duties only on the portions she sells to her customers, rather than on the whole shipment up front.

Yachts are commonplace in the Caribbean, so tradesmen who specialize in yacht refurbishing are in demand. Our client may need anything from parts for an engine to rare wood paneling, obtained from any country in the world. He moves these to Challenge until he needs them for the job – duty free if the work is sold outside the U.S.

These are just a few examples of how Challenge, located in Broward County, Florida – gateway to the Caribbean – has partnered with all sorts of clients to improve their bottom lines.

Now we want to hear your story! Tell us about a situation where you did or should have used a Customs Bonded Warehouse. How did it turn out? Were you satisfied with the service and savings?

You probably already know what a warehouse is – storage space you own or lease. But what is a Customs Bonded Warehouse, and how can it be beneficial to your business? Let’s have a look.

The United States Customs Bureau is at liberty to impose a variety of duties, excise taxes, and quota charges on goods brought into this country. This is where the “Customs” in Customs Bonded Warehouse comes in. These fees must be paid before you may take possession of the shipment if your goods are bound for a private or public warehouse. That can be some big dollars.

Among many other requirements to attain accreditation, a Customs Bonded Warehouse has to provide a bond. That is simply a guarantee to the government that duties on the goods will be paid. That “insurance policy” is the “bonded” in Customs Bonded Warehouse.

In return for that assurance, the government allows you to defer or avoid fees by moving the cargo through a warehouse certified by the U.S. Customs Bureau (Challenge has this honor). Simply put, it works like this:

Defer payment of fees until items are sold. Bring a shipment into the U.S. and pay duties incrementally, as you sell the product to your customers. Your goods are safely stored and your cash remains available for investment or other uses, meanwhile.

Avoid excise tax on re-exports. Bring goods into the U.S. and store them at Challenge before reshipping to other countries. You eliminate paying tax altogether, since the government knows that the goods will not be sold here.

Consolidation. We take your shipments from multiple countries and combine them into new configurations before re-exportation. Again, no duties!

Savings on documentation. Requirements for clearance paperwork on goods brought into a Customs Bonded Warehouse are reduced, and we handle what is necessary for you.

Read more about our Customs Bonded facility at Customs Bonded Warehouse. Then contact Challenge to learn more about how Customs Bonded Warehousing can help maximize your profits.

http://challengewarehousing.com/wp-content/uploads/2017/03/bonded-warehousing.jpg6871030cwadminhttp://challengewarehousing.com/wp-content/uploads/2017/04/challenge-warehouse-logo-dark.pngcwadmin2017-03-06 19:11:472017-03-06 19:13:49Why Should I Use a Customs Bonded Warehouse?